BILL NUMBER: SB 1228	CHAPTERED  10/10/99

	CHAPTER   760
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 8, 1999
	AMENDED IN ASSEMBLY   AUGUST 31, 1999
	AMENDED IN SENATE   AUGUST 17, 1999
	AMENDED IN SENATE   JUNE 7, 1999
	AMENDED IN SENATE   MAY 20, 1999
	AMENDED IN SENATE   MAY 6, 1999

INTRODUCED BY   Senator Vasconcellos
   (Coauthor:  Assembly Member Alquist)

                        FEBRUARY 26, 1999

   An act to add Section 1936.5 to the Civil Code, relating to rental
vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1228, Vasconcellos.  Rental vehicles:  airports.
   Existing law regulates the advertisement of vehicle rental company
rates and generally requires that a rental company advertise and
charge a rate that includes the entire amount, except taxes and
mileage, and prohibits additional fees, including the imposition of
airport fees and charges.
   This bill would require rental car companies doing business with
specified customers at the San Jose International Airport to impose
an additional fee for the purpose of providing an airport-mandated
common use busing system for the movement of passengers between the
terminal and an interim car rental facility until the commencement of
the collection of the next described fee.  The bill would require
the companies to impose an additional fee for the purpose of
financing, designing, or constructing either consolidated rental car
facilities or a common use transportation system, or both, if certain
conditions are met, and would require additional disclosures in
advertising and contracts by rental car companies imposing that fee,
or by any person or entity other than a rental car company, including
a passenger carrier or a seller of travel services, that advertises
or quotes a rate for a car rental subject to a surcharge.  The bill
would provide that authorization to impose the fee would expire no
later than 20 years from the date that the amount of the first fee is
collected.  The bill would make legislative findings and
declarations as to the necessity for a special statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1936.5 is added to the Civil Code, to read:
   1936.5.  (a) Notwithstanding subdivision (m) of Section 1936, a
rental car company conducting business with customers that use either
the consolidated rental car facility or the common use
transportation system, or both, at the San Jose International Airport
shall surcharge a fee to its customers that meets all of the
following criteria:
   (1) The fee is imposed by the City of San Jose, by duly adopted
ordinance or resolution, and is required to be remitted to the City
of San Jose by the rental car company for the purpose of financing,
designing, and constructing one or both of the following:
   (A) Consolidated rental car facilities.
   (B) An airport-mandated common use transportation system for the
movement of passengers between the terminals and the consolidated
on-airport rental car facilities.
   (2) The fee imposed on customers of on-airport rental car
companies is proportionate to the costs of the consolidated rental
car facilities and the common use transportation system.  The fee
imposed on customers that are picked up or delivered to the airport
by off-airport rental car companies is proportionate to the costs of
the common use transportation system only.  The fee is uniformly
applied to each class of on-airport or off-airport customers.
   (3) The fee is imposed on a per contract basis and does not exceed
ten dollars and fifteen cents ($10.15).
   (4) Collection of the fee commences when the consolidated rental
car facility is constructed, occupied, and opened for service.
Authority to collect the fee shall expire no later than 20 years from
the date the fee is first collected.  Any fees so collected that are
not used for design and construction shall be applied to retire the
debt on the consolidated rental car facilities and common use
transportation system.
   (5) The fee collected for this purpose is debt owed to the airport
by the collecting party.  The debt is due and payable to the
airport, monthly, quarterly, or at any other interval the airport may
establish to facilitate collection and insure payment.
   (6) The fee is a user fee, not a tax, and the fee is not related
to property under Article XIIID of the California Constitution.
   (7) Revenues collected from the fees are applied in accordance
with the terms of any resolutions, indentures, or other financing
documents applicable to the provision of facilities and payments of
expenses and do not exceed the reasonable costs of financing,
designing, and constructing:
   (A) Consolidated rental car facilities.
   (B) An airport-mandated common use transportation system for the
movement of passengers between the terminals and the consolidated
on-airport rental car facilities.
   (8) Revenues collected from the fees are not applied to costs for
the design and construction of a consolidated rental car facility in
excess of $155 million or to costs for the design and construction of
a common use transportation system in excess of $120 million.
   (b) Notwithstanding subdivision (m) of Section 1936, a rental car
company conducting business with customers that use an
airport-mandated common use busing system operated for the movement
of passengers between the terminal and an interim car rental facility
at San Jose International Airport shall surcharge a fee to its
customers.  The surcharge shall meet all of the following criteria:
   (1) The fee is imposed by the City of San Jose, by duly adopted
ordinance or resolution, and is required to be remitted to the City
of San Jose by the rental car company for the purpose of providing
the common use busing system.
   (2) The fee is imposed on a per contract basis, not to exceed five
dollars ($5) per contract.
   (3) The fee collected for this purpose is debt owed to the airport
by the collecting party.  The debt is due and payable to the
airport, monthly, quarterly, or at any other interval the airport may
establish to facilitate collection and ensure payment.
   (4) The fee is a user fee, and not a tax, and the fee is not
related to property under Article XIIID of the California
Constitution.
   (5) Revenues collected from the fee may not exceed the reasonable
costs of providing the busing and may not be used for any other
purpose.
   (6) The authority to collect the fee under this section expires
when collection of the fee described in subdivision (a) of this
section commences.
   (c) A rental car company that charges its customers a fee pursuant
to subdivision (a) or (b) shall do all of the following with respect
to any advertisements or quotations of rental rates applicable to
San Jose International Airport:
   (1) Clearly disclose the existence and amount of the fee in any
radio, television, or other electronic media advertisement.
   (2) Clearly disclose the existence and amount of the fee in any
print advertising, in a print size no smaller than the print size of
the rental rate.
   (3) Clearly disclose the existence and amount of the fee in any
telephonic, in-person, or computer-transmitted quotation at the time
of making an initial quotation of a rental rate and at the time of
making a reservation of a rental car.
   (4) In any computer-assisted transaction, prominently display the
fee on the same page on the computer screen with the displayed rental
rate, in a print size no smaller than the print size of the rental
rate.
   (5) Separately identify the purpose of the fee and the amount on
its rental agreement.
   (d) If any person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises or quotes a rate for a car rental subject to a surcharge
imposed pursuant to subdivision (a) or (b), that person or entity
shall, to the extent not specifically prohibited by federal law,
clearly disclose the existence and the amount of the fee in any
telephonic, in-person, or computer-transmitted quotation at the time
of making an initial quotation of a rental rate and at the time of
making a reservation of a rental car.
   (e) Notwithstanding any other provision of law, including, but not
limited to, Part 1 (commencing with Section 6001) to Part 1.7
(commencing with Section 7280), inclusive, of Division 2 of the
Revenue and Taxation Code, the fees collected pursuant to this
section shall not be subject to sales, use, or transaction taxes.
   (f) The authorization to surcharge fees provided in this section
shall become inoperative as of the date described in paragraph (4) of
subdivision (a).
   (g) A rental car company that surcharges its customers a fee
pursuant to this section shall remit the amounts collected to the
City of San Jose, in accordance with any applicable local ordinance,
resolution, indenture, or financing document.
   (h) A rental car company that surcharges a fee pursuant to this
section and does not comply with the disclosure requirements of
subdivision (c) or a person or entity that does not comply with
subdivision (d) shall be subject to all applicable remedies for
failing to make required disclosures, including, but not limited to
Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of
the Business and Professions Code.
  SEC. 2.  The Legislature finds and declares with respect to Section
1 of this act that a special law is necessary and that a general law
cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution because of the unique
funding, public service, and jurisdictional concerns involving the
City of San Jose and the San Jose International Airport.
